The Nation Newspaper

Tag: shopping

  • The rise and rise of Shoprite

    The rise and rise of Shoprite

    Seven years ago, retail giant Shoprite landed in the country when it opened its first outlet at The Palms in Lekki, Lagos. Between then and now, it has opened other outlets in Ibadan, Ilorin and Enugu. It still wishes to have more outlets, but it says it is being constrained by space. Tonia ‘Diyan reports.

     

    Retail giant Shoprite is contemplating expanding, but it is being hampered by space. Its parent company, Shoprite Holdings Ltd (SHL) claimed in its South African home country on Wednesday that it was being slowed down by lack of sites in Nigeria.

    Nigeria, with more than 160 million people, could eventually carry about the same number of stores as Shoprite has in South Africa, Chief Executive Officer Whitey Basson said in a presentation in Johannesburg.

    South Africa’s largest retailer, which has more than 800 stores in its home market, is in the process of adding 37 stores to the seven it already has in the West African country.

    “Nigeria could handle 600 to 800 stores if you look at the size of the cities,” Basson said. “Growth in Nigeria can go quickly, but that’s not dependent on Shoprite, but on sites. Non-South Africa property development is slower than we like.”

    As food retail in South Africa is becoming saturated and more competitive, Shoprite is expanding in the rest of Africa. Sales for the year through June climbed 28 per cent to 11.7 billion rand ($1.1 billion) in supermarkets outside its home market as the rand weakened against the dollar and some African currencies, making imports from South Africa more affordable. Supermarkets in the region contribute 14.2 per cent to total revenue.

    In addition to a lack of available property, supply lines outside of South Africa “remain a huge challenge,” Basson said. Shoprite’s lead time in Nigeria is 117 days and the retailer is considering building a distribution center in the west African country.

    According to Mr Whitey Basson , the chief executive officer, “Several cities in Nigeria have populations of more than eight million people. I can’t say all of them have the same spending power, but Nigeria can support the same number of supermarkets as South Africa.”

    “Even if you have 60 per cent of the population living in poverty, 40 per cent of the Nigerian population is still bigger than the South African population,” he said

    Mr Basson said the grocery store made a 19 per cent rise in first-half earnings and has about 950 supermarkets with 729 of them in South Africa. It plans to open more stores outside of South Africa, preferably in Nigeria soon but for the lack of properties. It also plans to enter the Democratic Republic of Congo.

    Given its population and potential for growth, retailers are increasingly targeting Nigeria. The country’s population cannot be compared to South Africa’s 50 million, according to World Bank estimates.

    Shoprite turned the tide of grocery shopping in the country when it opened in 2006 as an anchor store at The Palms, Lekki, Lagos.

    Consumer spending is improving in Africa’s biggest economy due to decades-low interest rates and above-inflation wage hikes, but the outlook is uncertain due lack of property in choice areas.

    Shoprite, a domestic merchant seen likely to lose the most from discounter Wal-Mart’s entry into the country, has been on an aggressive expansion drive in Africa.

    It said sales increased 13.2 per cent to 41 billion rand ($5.4 billion) after increasing prices by an average of 4.6 per cent and gaining nearly 30 million rand from favourable currency swings.

    Shoprite the leading retailer across Africa and the brand choice for many consumers across the African continent work hand in hand with many local Nigerian suppliers, buying in bulk in order to pass the cost savings onto shoppers. So this way, shoppers can continue to enjoy a world class shopping experience whilst saving money.

    Its large following of loyal shoppers can be attributed to their ability to offer the widest range of products and the highest standards of freshness and quality while maintaining the lowest prices.

    The past few years have seen the rise of modern shopping malls in Nigeria with Shoprite as the anchor tenant. It is just a natural progression from what has always been a way of life for an average Nigerian. Some Nigerians are great spenders.

    The potential buying power of Nigeria was recognised with the advent of democracy in 1999. There is recognition by the outside world that there is a lot of wealth here and there should be a market here. But the potential for more malls in Nigeria is hindered by insufficient access to land. A certain amount of land is required for a shopping mall, it is has to be a land in the right location and in the right place.

    According to Erejuwa Gbadebo, chief executive officer Broll Nigeria, there should be support from financial houses such that would provide access to finance for projects such as the shopping malls. These are projects that create jobs and stack up a revival in the micro economy around a place.

  • Online shopping … one year after

    Online shopping … one year after

    A few years ago, the Nigerian internet space had little or no commercial viability. This was because internet usage was still developing and provided limited network opportunities for people.

    Then, an explosion in the number of people that have acccess to the internet with its unlimited opportunities among which is online shopping which has completely changed the face of retail business in Nigeria.

    Online shopping is a relatively new and fast-growing market, which was spurred by the ongoing transformation of the Nigerian payment system.

    However, the emergence of online stores, such as Jumia Nigeria, African foods online, Awoofshop, Yeside store, Sunglasses.com and others has completely changed the face of that sector.

    Today, there are opportunities that online shopping has for the Nigerian retail market.

    According to a study by an institute, Euro monitor based in the United States, Nigeria’s GDP based on purchasing power increased by 21.67 per cent in the last four years. In same period, Internet users grew by 46 per cent.

    Today, online shopping enjoys about 70,000 unique visitors daily, with a daily subscriber base of over 150,000.

    People have been able to buy an assortment of quality products at affordable prices – buying everything from fashion accessories, consumer goods, electronics and home appliances to beauty products and many more.

    Of the 40 million Nigerians who are online, a large number usually visits online stores, resulting to a growing trend in visits and purchases. Also, the stores have grown to become the solution to retail online and offline with people preferring to pay as their goods are delivered to them.

    People can now track online activities, and know about deals and bargains as soon as they come up.

    The notion that buying online is for the rich and elite has been erased. With as low as N100, a person can buy airtime online at a quick teller store and order food online at Hello Food.

    People are encouraged to get involved in the trend, particularly via social networks, such as Facebook, twiter and the likes.

    Recently at an event organised by Jumia online store, Minister for Communications Technology Mrs. Omobola Johnson delivered a keynote address on online shopping in Nigeria, describing it as an engine for job creation and economic growth.

    According to her, there are possibilities in online shopping. “Online shopping is one of the primary drivers of growth in the country’s economy thanks to companies like Jumia.com that have not only pioneered online retail trade in Nigeria, but have also shown people that running such a business model within our shores is possible,” she said.

    She said online shopping had opened doors for the upcoming generation of young Nigerian entrepreneurs, providing a platform for them to express their creativity while acting as a job creation engine to hundreds of others. These stores have attracted important investors and they have great impact on Nigeria as a country and as a market place. That is why at the federal level, companies that know how to make use of these developments to help reshape Nigeria’s economy are encouraged,” she said.

    “We pioneered the online retail market in Nigeria and now people can see its significant impact on the economy,” said Mr  Tunde Kehinde and Mr Raphael Afaedor, co-founders of Jumia.com.

    The CEOs of Rocket Africa, Mr Jeremy Hodara and Mr Sacha Poignonnec, in their contributions said: “Online shopping has opened doors for the upcoming generation of talented and young Nigerians. It has seen numerous talents and aspirations in hundreds of Nigerians and it is assisting individuals in fulfilling their ambitions and ultimately contributing to the nation’s growth technologically, economically and socially.”

    Shoppers have gradually got used to this trend, seeing it as part of their daily lives and they are ready to ignore risk. There are many online stores to choose from. Yeside focuses on fashion, shoes, clothing, bags, watches, jewelries, and all kinds of fashion accessories.

    Buy Right sells electronics, inverters, UPS, mobile phones, cameras, camcorders, storage devices and notebooks, among other things.

    Wahali is an islamic online bookstore.

    AwoofShop sells assorted products, from mobile phones to books, clothing, video games, computers, etc.

    African Foods Online Store sells yam, bitter leaf, Cocoyam flour, Egusi, Garden egg, Ogbono, Palm oil and other food stuffs.

    Some shoppers’ who spoke to The Nation Shopping expressed satisfaction with the trend.

    According to Mr Shola Adegbenle, a teacher at the Hogas International School, Lagos Island: “Merging e-commerce and social networking has never been this good, likewise has buying good quality products over the internet become this easier.”

    Mrs Folashade Odunuga, an administrative staff with the Lagos State Ministry of Education, said: “The online stores, that are successful today, apart from satisfying customers with swift-quality services, have also been able to create opportunities for many startups, small and medium entrepreneurs. In one year, the Nigerian online market has shaped and grown. It is indeed a big achievement to the country’s economy.”

    A marketing personnel at a mall, Mrs Adetutu Bankole, said malls are now realising the value of the internet and are also adapting their range of products and services to take advantage of it.

    “Some shops offer to order items for customers online if they do not have it in stock at the time needed,” she said.

  • Shopping for a new school term

    Shopping for a new school term

    Pupils are poised to return to school as a new academic session begins soon. It is time for parents and guardians to go shopping. Gone are the days when, perhaps, for economic reasons, pupils returned to school with items used by their older siblings. This is another era. Departmental, online stores and major markets of school items are brimming with shoppers out to get easy bargains and good value for their money.

    With the beginning of a new school term, retailers get busy promoting back-to-school sales and stocking their stores with school items, such as calculators, school uniforms, sandals, lunch boxes and what have you! No doubt, it’s time for serious business for parents, guardians and sellers.

    Major markets and retail stores in Lagos are selling school items in various categories at cheap rates. An example is the Balogun Market on Lagos Island. It was jam-packed at the weekend with women who went to buy school items.

    “Give me a strong item that will last long” was on their lips, despite knowing that they would still need to buy new ones at the start of another term.

    However, buying school items for each new term has become an infectious syndrome among parents today.

    At the market, a woman was seen carrying a ‘Ghana must go’ bag on her head, filled with school items. One would have thought she visited the market to buy and resell school items. She had eight pairs of each item in the bag.

    The shopper, Mrs Afusat Karim, has nine children. Five of them are in secondary school; three in primary school and the last child is yet to be enrolled.

    According to the retailer who sells to her at the start of each term, Mr Agu Alozie: “Mrs Afusat is my very good customer; she places her order on phone at the close of each term and pays money into my account. I do not hesitate to stock her bag as she sometimes buys school supplies worth N85,000 per term. Her children live with her mother outside Lagos, which is why she prefers to buy in bulk to last the whole term and save her mother the rigours of going to the market.”

    As major markets and stores continue to play a vital role in shoppers’ spending decisions, retailers offer good bargains to save money in their stores and on their websites, to attract value-focused back-to-school shoppers.

    Hoping to spread spending, more parents have begun shopping earlier than they did last term. The budget-conscious consumer has not forgotten about price, quality or value; she has become more practical in her shopping; and with school purchases considered a necessity, parents have been saving to be able to fully afford all their children’s needs .

    Parents determine what item their wards need each term. As a result, academic needs seem to be shifting towards products that provide the latest features. In recent times, secondary students consider a laptop a necessity, believing it will lift their grades.

    If only parents buy what is necessary during holidays, it is much cheaper and they won’t be overwhelmed with the prices later. Therefore, they need to go through their bill line by line, for unnecessary add-ons. ‘When’ to buy school items should often be given priority.

    According to a money expert, “the best time to buy school supplies is during the holidays when there will be enough time to do little research and comparison, thereby saving money.”

    The process can be challenging for parents, particularly, the busy ones who are expected to create the environment and materials that provide the necessary items to transform their children’s learning experience.

    “When it comes to children, there’s nothing more important to a parent than making sure they have everything they need, even in a tough economy – and especially when it comes to back-to-school shopping,” said the National Retail Federation President and CEO, Matthew Shay.

    On the other hand, secondary school pupils and their parents are much more likely to look for ways to cut corners as much of their costs come in the form of tuition and living arrangements.

    According to the marketing manager of Jumia online store, Mr Afam Anyika, “we stock a variety of back-to-school items and they are quite affordable. We advise shoppers to check our website and take advantage of these items.”

  • Shopping 101: What to buy for your man

     

    WOMEN often have a hard time buying the right gifts for the men in their lives. One of the reasons being that men tend to buy everything they want themselves with great ease. But there are a few tricks to help get the perfect item in as little time as possible.

     

    What’s trending?

    If you want to buy an on-trend outfit for a man, go for a pale-blue button-down shirt with a knitted tie, chinos, a pair of loafers and a double-breasted knitted cardigan. Stripy tops or a chambray shirt are great if you want to be a little more adventurous, and navy is a particularly flattering colour. But stay clear of anything too fashiony.

    If you haven’t got much money, just buy the best pair of socks or the best shirt you can, rather than a cheap version of something expensive. He can never have enough shirts. Think about the man’s profession and what he already has in his wardrobe, so your purchase is practical.

     

    Accessorise

    Leather wallets look great and come in lots of shades, so it is one area where a man can be a bit more colourful. Belts are also good to buy, as men do not often spend a lot of money on them. You could give them a really luxurious one.

     

    Finishing touches

    No man is going to complain if you buy an expensive men’s watch. A man wears a watch because he can’t wear a Porsche on his wrist. It’s the one thing that men feel OK to talk about sartorially. Beaded bracelets are great buys, too. They add a bit of irreverence to a classic outfit.

     

    Appeal to his vanity

    When it comes to presents for men the best things come in small packages. Tell them the gift will make them look younger and more handsome and they won’t argue – most men are open to grooming. But you want a product that looks good in the bathroom alone. Fragrances are difficult, as they smell different on different people, try finding out the kind of smell he like and you just might have a winner.

  • Why shoppers prefer night market

    Some say for convenience, affordability and availability, night market is better, especially for those who don’t have time during the day for shopping. IDOWU TAIBAT writes that at the Adedeji Night market in Itire, a Lagos surburb, shopping is easy because of the relatively cheap prices.

    Adedeji night market at old Garage bus-stop, Itire, a metropolitan area in Lagos State, has been an advantage to the working class.

    Commodities in the market are more affordable than the day market. It Is mostly patronised by working class people within and outside the area. Some people visit the market because they can’t cope with the harsh rays of the sun in the afternoon. But majority visit mainly because of its affordability.

    There are more items at the night market. Mainly items such as cassava flour, yam flour, all kinds of food items, school items for children, assorted fruits, hair beauty and barbing salon, restaurant, hot baked bread directly from the bakery , shoes, bags, male and female accessories, clothes , etc. The market is secured, such that there is a police station and policemen are always on patrol.

    As expected of a normal market environment, the market is noisy one with cars plying the road and traders calling on passersby to patronise them. Items are displayed on thick nylons spread on the ground and some on tables.

    One of the traders called Iya Cele told The Nation Shopping that she sells cheap items to customers mainly the regular ones. My customers benefit a lot from me; I don’t fail to give them value for their money when they visit the market.

    For Mrs Abimbola Ishola, who visited the market to buy food items, she said: “I am always busy during the day; therefore shopping at night is the best option. As you can see, this place is a blessing to people like me. I can tell you that for some time, I have not done my shopping anywhere else. I have come to buy some foodstuffs that I will cook for my family when I return home.

    Miss Fausat Ibrahim, a worker with a construction company, said it is easy for her to buy things at the night market because her house is not far from the market and she is more comfortable shopping there. The market is open every day, even on Sundays.

    An advantage of the market is it gives traders much room, especially women; it gives them time to do other things. Nursing mothers also have time for their babies during the day .

     

  • Onitsha, a shopper’s delight

    Onitsha, a shopper’s delight

    Onitsha has become one of the busiest commercial centres in the country. Among other markets, it accommodates the Main Market, acclaimed to be the biggest in West Africa and attracts millions of shoppers from various parts of the world, especially West Africa. 

    If you refer to Onitsha in the heart of Anambra State as the home of all trades, it cannot be disputed. Possibly, due to its strategic position, close to the River Niger, the town attracts great commercial activities. Anyone leaving or going to the Southeast must pass through the town. It, therefore, boasts of several shopping destinations, but the local markets are the most patronised.

    Upper Iweka, known as the take-off point for most commercial vehicles leaving Onitsha, is a large market. The presence of travellers leaving and returning makes the place a shopper’s destination any day. From the massive motor park where commuter drivers pack to load their vehicles, travellers waiting for the take off of their vehicles could buy virtually everything they need. If hawkers are not able to locate you on time, you could dash into the market nearby to get anything you want. This makes the place a stop-over point for a lot of people.

    Away from Upper Iweka, if you are looking for a thriving market where you can shop, among the first to be mentioned is the Main Market, acclaimed the largest in West Africa. Many see it as a market with creative and proactive business men and women.

    It is mainly known for its ability to offer virtually all types of goods and services. There are different sections for retailers and whole sellers. Shoppers always troupe to the market to purchase their daily needs.

    Those who spoke to The Nation Shopping spoke on the stability and progress of the market. A marketer from Enugu, Mr Ogbonna Chibuzor, said: “Since I have been marketing my products I have not seen a place so friendly as the Main market, Onitsha. Business with the people here has been going so smoothly and they also know how to treat a customer. Here, they believe that once you treat a customer right he or she will come back again.

    A seller from the market, Mr Okonkwo Azublke, said: “Here prices are cheaper due to competitors all over the market. Everybody wants to sell even at the gain of one Naira. Every day we see different categories of people who come from far places, some are foreigners, while some come from neighbouring countries such as Ghana, Togo, Chad and Niger Republic. There is also no day that passes without shoppers patronsing us. Business here has been encouraging.”

    Another market that attracts a lot of shoppers is the popular Relief Market on Owerri Road where you can find most of the things you desire. The market also thrives at night.

    The Ose Main market by the river side is also one of the most fascinating places to shop because the traders deal in different kinds of edible things like fruits, yam, rice, onions, wheat and cassava, among others. Here people from different villages in Anambra assemble very early in the morning to showcase their goods.

    Mrs Chika Agu, a shopper from Awada, a suburb of Onitsha, said: “This is a very nice place. Life here is accommodating and the people are very hard working. They sell fresh fruits here and I like it. Prices are equally cheaper if you know how to bargain.

    A seller, Mr Nnamdi Okwudili, said: “Every day, we work hard to make sure that we come out with the best of our goods. We make early cultivation and the Lord God often blesses us with a bounty harvest so we are grateful to Him every day”.

    Other eye catching places are the Ochanja Main market, the Electrical market located on Owerri road; the Ogidi market, Ogidi; Ogbo tile, Nkpor where traders deal on all kinds of tiles. Ogbo Ogbu, at Head Bridge (by the River Niger) is where people go to buy drugs. At Mgbuka Obosi market, the traders sell motorcycles, tricycles and different vehicle spare parts.

     

  • NASME frets over shopping malls activities

    The National Association of Small and Medium Enterprises (NASME) said shopping malls are taking over the business of small traders.

    Executive Secretary of the association, Mr Eke Ubiji, said in Lagos that shopping malls were taking over products being sold by small time traders.

    Ubiji said the standard and ambience of shopping malls were enough to attract buyers against the open and harsh environment of petty traders.

    “Customers would prefer to go to an air-conditioned shop than to go to an unattractive shop to buy products. Many of these malls have everything in stock. You can buy building materials, hospital equipment and even farm products from the malls.

    “If you can buy tomatoes, pepper and onions in a sophisticated mall, why would you go to muddy and unkempt open markets to get them,” he said.

    According to Ubiji, many of the malls sell products at ridiculously cheap prices to attract more customers.

    “Foreign investments are good for our economy, but they should not be allowed to take over our small and medium businesses. It is even sad that many of the malls are owned by foreigners who don’t re-invest their profits into our economy.They would rather take it back to develop their own economies,” he said.

    Ubiji appealed to the government to put a limit on the kind of goods being sold by the shopping malls to guarantee the growth and sustenance of ordinary traders.